KAT vs USMC
Scharf ETF vs Principal U.S. Mega-Cap ETF
Which is better, KAT or USMC?
USMC has been ahead.
USMC has a lower expense ratio. USMC led over 1Y and the full window. KAT is less concentrated, with 50.9% of the fund in its ten largest positions against 55.3%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | KAT | USMC |
|---|---|---|
| Expense Ratio | 0.75% | 0.12%Best |
| AUM | $657M | $5.2B |
| Dividend Yield | 0.53% | 0.74% |
| Holdings | 68 | 58 |
| YTD Return | +6.42% | +13.98%Best |
| 1Y Return | +4.30% | +14.91%Best |
| 3Y Return (annualized) | - | +22.22% |
| 5Y Return (annualized) | - | +14.81% |
| Volatility (annualized) | 12.7% | 12.0%Best |
| Max Drawdown | -9.3%Best | -10.3% |
| $10,000 over 1.1 years | $10,725 | $11,965Best |
| Top 10 Weight | 50.9%Best | 55.3% |
| Fund Family | Scharf Funds | Principal Funds |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Dec 30, 2011 | Oct 11, 2017 |
Volatility and max drawdown, and the $10,000 over 1.1 years row, are measured over the window both funds cover: Aug 25, 2025 to Oct 14, 2026 (1.1 years).
KAT vs USMC growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 1.1 years both funds cover.
KAT vs USMC Performance
Scharf ETF (KAT) is an ETF from Scharf Funds and Principal U.S. Mega-Cap ETF (USMC) is an ETF from Principal Funds. Over the past year KAT returned +4.30% while USMC returned +14.91%. Year to date, KAT is up 6.42% versus a gain of 13.98% for USMC.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
KAT has been the more volatile fund, with annualized monthly volatility of 12.7% compared with 12.0% for USMC. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -9.3% for KAT and -10.3% for USMC. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.42. They move together some of the time, and apart the rest.
Fees and Cost Over Time
KAT charges 0.75% per year while USMC charges 0.12%. On a $10,000 position that is $75 vs $12 annually, a gap of $63 per year that compounds over a long holding period. On income, KAT currently yields 0.53% against 0.74% for USMC.
Holdings Overlap
24.3% of KAT's money is in holdings USMC also owns. 20.9% of USMC's money is in holdings KAT also owns.
KAT and USMC share little of their money.
5 positions in common, counted across the 31 positions we hold weights for in KAT and 27 in USMC, against full books of 68 and 58.
What only one of them owns
Our book lists 22 positions for USMC that do not appear in our book for KAT (79.1% of the fund), and 21 for KAT that do not appear in USMC (62.4%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
24.3% of KAT is already inside USMC.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, KAT or USMC?
KAT has an expense ratio of 0.75% while USMC charges 0.12%. USMC is the cheaper option, by $63 a year on a $10,000 investment.
Which performed better, KAT or USMC?
Over the past year KAT returned +4.30% vs +14.91% for USMC, so USMC leads on 1-year performance. Over the longest common window we track (1 years), KAT annualized +6.57% vs +17.71% for USMC. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, KAT or USMC?
KAT has been the more volatile fund at 12.7% annualized versus 12.0% for USMC. Worst drawdown: KAT -9.3% vs USMC -10.3%.
Should I hold both KAT and USMC?
KAT and USMC have a monthly-return correlation of 0.42, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between KAT and USMC?
24.3% of KAT's money is in holdings USMC also owns. 20.9% of USMC's is in holdings KAT also owns. They hold 5 positions in common, counted across the 31 positions we hold weights for in KAT and 27 in USMC.
Which pays a higher dividend, KAT or USMC?
KAT yields 0.53% while USMC yields 0.74%, so USMC currently pays the higher dividend yield.
Is USMC better than KAT?
USMC has a lower expense ratio. USMC led over 1Y and the full window. KAT is less concentrated, with 50.9% of the fund in its ten largest positions against 55.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.